Global stock markets hit by "Black Monday"! This sector of Chinese A-shares stands out beautifully!

Today, A-shares experienced a sharp decline along with global markets, with the Shanghai Composite Index briefly falling below 3,800 points during the session, hitting a six-month low. The CSI 50 Index plunged over 5%, reaching a one-year low. The Shenzhen Component Index, ChiNext Index, and STAR Market Index also all fell more than 3%. Over 5,200 stocks declined, and trading volume gently increased to 2.45 trillion yuan.

In the market, most industries declined, with only a few sectors such as coal, forestry, oil and gas extraction, and passenger vehicles showing gains. Gold, hotel and catering, tourism, and medical beauty sectors saw significant drops.

Wind real-time monitoring data shows that the Shenwan power equipment industry received net inflows of over 5.2 billion yuan from major funds. Automotive, basic chemicals, non-ferrous metals, and light industry manufacturing each received net inflows exceeding 3 billion yuan. Coal and utilities also saw net inflows over 1 billion yuan. Electronics experienced net outflows of over 9.9 billion yuan, communication net outflows over 4.9 billion yuan, banking over 3.7 billion yuan, and pharmaceuticals and biotech over 2.4 billion yuan.

In individual stocks, BYD (002594) today attracted net inflows of over 2.9 billion yuan from major funds. Shunhao Co., GCL System Integration, Wolong Electric Drive, and Chint Power each received net inflows exceeding 1 billion yuan, with five stocks including Wolong Electric Drive and Chint Power gaining over 1 billion yuan in net inflows.

Market focus was on the impact of Middle East tensions, causing sharp fluctuations in international crude oil prices. As an alternative energy source to oil, coal was sought after by the market and was one of the few sectors to defy the trend and rise today. Yunmei Energy and Liaoning Energy hit the daily limit up, while Shanxi Coking Coal and Zhengzhou Coal Electricity also saw large gains.

Near the close, the main contracts for coking coal futures hit the daily limit up, reaching a new high for the year. The main contract for coke also surged 6.92%, also hitting a yearly high.

According to Cinda Securities, as of last weekend, coal inventories in eight coastal provinces decreased by 52,000 tons week-on-week; daily consumption increased by 238,000 tons/week, a 12.62% rise; and available days of supply decreased by 0.5 days.

Cinda Securities believes that the current phase marks the beginning of a new upward cycle in the coal economy, with fundamental and policy factors resonating. It is an appropriate time to allocate coal stocks on dips.

In the weak sectors, underperforming stocks were abandoned by the market, with ST stocks collectively plunging in volume. Stocks like ST Saiwei, ST Quanyou, ST Xuefa, and ST Yundong all hit the daily limit down or fell more than 5%.

Previously popular stocks also suffered heavy declines, especially in sectors related to artificial intelligence, data centers, robotics, and chips, with many hitting the daily limit or falling over 10%. For AI, stocks like Dongjie Intelligent and BaiAo Intelligent saw over 20 stocks hitting the limit down or dropping more than 10%. In data centers, Meixin Technology and Aohong Electronics also experienced nearly 20 stocks hitting the limit down or falling over 10%.

Looking ahead, Ping An Securities pointed out that in the short term, the US-Iran conflict remains the main pricing anchor for global assets. Until the situation clarifies, equity market volatility may continue, with a defensive style favoring dividends and low valuations. In the medium to long term, Chinese assets are still expected to benefit from their safety attributes, especially in sectors supported by policies and with clear growth prospects: first, cyclical sectors benefiting from commodity price increases and strategic security needs (energy, chemicals, etc.); second, capacity cycle low points and sectors likely to benefit from global inventory replenishment, such as advanced manufacturing (electric power equipment, machinery, etc.).

Western Securities noted that the Kondratiev wave depression accelerated sharply after the US-Iran war, reflected in recent market volatility. However, large fluctuations also present good entry opportunities for the next phase of the market. The more volatile the market, the more important it is to stay calm and consider trends. They suggest increasing allocations in the PPI chain, such as oil and chemicals, in the first half of the year, while also focusing on China manufacturing sectors with potential for overtaking (photovoltaics, wind power, energy storage, engineering machinery). In the second half, focus shifts to CPI-linked sectors like Baijiu, and sectors benefiting from the reversal of the US dollar index, such as Hang Seng Tech and gold.